286.8-032 Application for license.
(1)
(2)
(3)
(4)
A license as a mortgage loan company or a mortgage loan broker may be obtained
by filing a written application with the commissioner. The commissioner may
require the electronic filing of the application and fees with the State Regulatory
Registry, LLC, or its successor organization; its parent, affiliate, or operating
subsidiary; or other agencies or authorities, as part of the nationwide mortgage
licensing system, and consistent with the intent found in KRS 286.8-285.
The application shall:
(a) Be sworn to;
(b) State the name of the applicant and each of the applicant's affiliates and
operating subsidiaries engaged in business as a mortgage loan company or a
mortgage loan broker;
(c) State the name under which the applicant will conduct business in Kentucky;
(d) State the physical address of the applicant's principal office and branch or
branches;
(e) List the name, residence, and business address of each person having an
interest in the business as principal, partner, officer, trustee, and director,
specifying the capacity and title of each;
(f) Indicate the general plan and character of the business;
(g) Contain a corporate surety bond or other instrument as prescribed by KRS
286.8-060;
(h) If applying for a mortgage loan broker license, contain a compiled financial
statement of the applicant; or, if applying for a mortgage loan company
license, contain a reviewed or audited financial statement of the applicant
prepared by a licensed or certified public accountant;
(i) Include payment of the required fees; and
(j) Include such other information as the commissioner determines necessary.
No mortgage loan company license may be granted unless the applicant:
(a) Has and maintains, so long as the license is in effect, a minimum, documented
funding source of one million dollars (,000,000);
(b) Has a net worth in excess of one million dollars (,000,000); or
(c) Has and maintains a net worth in excess of one hundred thousand dollars
(0,000) and certifies to the commissioner that the company will not make
or purchase loans secured by mortgages on residential real property located in
Kentucky so long as the license is in effect.
A license issued to a mortgage loan company or a mortgage loan broker shall entitle
all officers and employees of the person, if a corporation, and all members, partners,
trustees, and employees, if an association, partnership, natural person, or trust, to
engage in the mortgage loan business pursuant to this subtitle, subject to the
applicable requirements of this subtitle.
(5)
(6)
(7)
(8)
If a licensee desires to establish a branch, the licensee shall file an application with
the commissioner that includes the physical location and telephone number of the
branch, the name of the prospective manager, the anticipated opening date, and any
other information requested by the commissioner.
Each applicant for a mortgage loan broker license shall have at least one (1)
managing principal at all times. This managing principal shall provide the
commissioner sufficient proof of a minimum of two (2) years' experience working
in the mortgage industry. The commissioner shall determine from the application
whether an applicant has sufficient experience to meet this requirement. Each
mortgage loan broker shall obtain written approval from the commissioner prior to a
change of managing principal.
All applicants for a mortgage loan broker license shall have successfully completed
an educational training course, approved by the department, of not less than thirty
(30) classroom hours' duration. Applicants who have held a mortgage loan broker
license for at least one (1) year in the past five (5) years shall be exempt from this
requirement. This section shall not apply to renewals of existing licenses. Approval
of an applicant for a mortgage loan broker license under this subsection shall be
conditioned on the applicant establishing that the district, state, or territory from
which the applicant applies, resides, or performs the primary portion of his or her
mortgage business has rules, regulations, or other provisions which by reciprocity or
comity are at least equivalent to this subsection.
The application for a mortgage loan broker and mortgage loan company license
shall state:
(a) The address of the physical location where the business is to be located in
compliance with KRS 286.8-250 and whether such location is a residence.
The physical location where the mortgage lending process is conducted shall
have a street address. A post office box or similar designation shall not meet
the requirements of this subsection. The physical location shall be accessible
to the general public as a place of business, unless the physical location is a
residence and proof of residence has been submitted as required by this
section. Photographs of the exterior, interior, and exterior sign of each
location shall accompany the application. If the physical location is not a
residence and is leased, the lease shall be for a minimum term of one (1) year.
A copy of the lease and the names of all employees conducting business under
the lease shall accompany the application. If the physical location is a
residence, proof that the location is a residence, in a form as required by the
commissioner, shall accompany the application. Proof of residence shall
confirm that the residence is owned or leased by the mortgage loan broker,
mortgage loan company, or its employees or owners and that the residence is
the main residence of any such persons. Proof of physical location shall
include proof that local zoning requirements are satisfied.
(b) A mortgage loan company or mortgage loan broker shall notify the
commissioner of a change in the location or name of its business or the
addition of any branch or branches in writing at least ten (10) days prior to the
change.
(9) On or after January 1, 2009, every mortgage loan company and mortgage loan
broker shall maintain an agent for service of process in the Commonwealth. The
name, address, telephone number, and electronic mail address of the agent for
service of process shall be filed with the application. The commissioner shall be
notified in writing at least five (5) days prior to any change in the status of an agent
for service of process.
(10) The commissioner may deem an application abandoned when an applicant fails to
provide or respond to a request for additional information.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 765, effective July 15, 2010. -- Amended
2009 Ky. Acts ch. 104, sec. 5, effective June 25, 2009. -- Amended 2008 Ky. Acts
ch. 175, sec. 7, effective April 24, 2008. -- Amended 2006 Ky. Acts ch. 218, sec. 3,
effective July 12, 2006. -- Amended 2003 Ky. Acts ch. 64, sec. 4, effective June 24,
2003. -- Amended 1998 Ky. Acts ch. 197, sec. 3, effective July 15, 1998. -- Created
1986 Ky. Acts ch. 461, sec. 4, effective July 15, 1986.
Formerly codified as KRS 294.032.
Legislative Research Commission Note (7/12/2006). This section was amended in
2006 Ky. Acts ch. 218. In that same session, 2006 Ky. Acts ch. 247, sec. 38 required
that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be
renumbered as sections of a single KRS chapter entitled the "Kentucky Financial
Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1), has
changed the number of this section and codified it as a section of KRS Chapter 286.
In addition, KRS references have been adjusted to conform with the renumbering.
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